The bank is the typical source for anyone looking for a loan, and for a long period of time, banks were the dominant hard money lender in this country. However, the increasing risk of hard money loans, as well as stricter regulations and guidelines, have made it difficult for borrowers to obtain a loan quickly, let alone one at all. While banks are rightfully responsible for their own best interests, there are many viable real estate investment opportunities that do not get a chance to come to fruition because of it.

Thankfully, in recent times, the source of hard money and the identity of the hard money lender have evolved. Private lenders are now the dominant force in the area of these types of short-term loans. The advantage of the private hard money lender is that they are not bound by the same guidelines, and have a level of expertise in the real estate industry that is much more specialized than that of a bank, which is required to have a more generalized knowledge of all types of loans.

What does this mean for you, the borrower? It means less paperwork to complete, less emphasis on your credit and lending history, and a level of understanding of your investment situation. You see a potential in your real estate development project, and so does your hard money lender – that is why the real estate project is enough collateral for the loan. Where a typical loan from a bank can take weeks if not months, your hard money lender can get you the financing you need in a matter of days, so you can keep your investment timeline on track.

Why a hard money lender?

Sometimes, opportunity just can’t wait. When you are making any real estate investment, whether you are simply purchasing a building, or in the middle of developing new properties, timing can be of the essence. Waiting can put you in dire financial straits, or allow a good deal to evaporate or be snatched up by another savvy investor.

In these cases, you need a quick turnaround, approval, and funding in your possession so that you can realize your goals. Imagine being able to, in as little as a seven days, having the money you need to get started, continue, or revitalize your investment. Imagine a loan that is flexible and can be tailored to your individualized needs. A hard money lender is the most effective, and in many cases, can be your sole solution.

Whatever your financial circumstances, your private hard money lender is available for a consultation. Depending on your private lender, you can have a poor credit or no credit history, you may not have to show proof of income, nor will you have to consider complex regulatory guidelines. Simply, your property will be your collateral, of which your hard money lender will most likely ask to be the first lien, and your loan will be assigned an interest rate. The rest of the terms are in most cases, negotiable.

Finding the right hard money lender

Choosing the right hard money lender is easier than you might think. As a highly specialized field, the market is not saturated with lenders as of yet. You can still find a hard money lender in your immediate area by doing a web search or asking your broker.

Once you have found some hard money lenders, make sure to do some comparing and contrasting. All hard money lenders offer flexible options for your loan, but to varying degrees, and finding the right fit for you depends on factors such as how much financing you need, whether the lender specializes in commercial or residential loans (or both), and of course, how much they will customize a loan to your needs.

To learn more about what a hard money lender can do for you, consult Lighthouse Capital Funding. We are a private hard money lender that specializes in providing a convenient and effective solution to your real estate financing needs. Contact us today to find out more.